Online outlay of £6.4 billion per month

Saturday, November 27, 2010

Category: Personal Finance Tips

According to Sainsbury’s Finance, 25.4 million adults are now making regular online purchases with their credit cards.  This news comes following an online survey of 2012 people, conducted by ICM.

The research also revealed that we are spending an average sum of £192 each month, which is equivalent to total online expenditure of nearly £6.4 billion per month.  The most popular online credit card purchases were found to be DVDs and music; reportedly followed by books, fashion items and holidays.

Despite the average online monthly spend standing at £192, the supermarket bank has pointed out that the ‘vast majority of credit card holders spend much less than this’.  In fact, two thirds were found to be spending less than £100 per month on their credit cards.  At the other end of the scale however, 1.2 million people are reportedly spending over £1,000 per month online with their credit cards – thus increasing the average by a significant amount.

Sainsbury’s Finance has compiled ‘five simple steps’ for consumers to follow for safe online shopping:

1. Only use trustworthy websites and only make purchases over a secure connection.  When a connection is secure, a padlock should be displayed in the corner of your web browser.
2. Keep a record of all online transactions as e-mail receipts will be required if there are problems with any of your purchases.
3. Ensure that your security software is up-to-date.
4. Know your rights and bear in mind that credit card purchases are guaranteed by the Consumer Credit Act, which provides protection in the event of faulty or undelivered goods.
5. Be sure to use a secure connection, otherwise it may be possible for third parties to obtain your payment details.

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Homeowners who are faced with expensive credit card bills each month could consider tying them all up into one place with a secured loan.  One of many finance options available, a secured loan for consolidation could allow borrowers to replace multiple monthly repayments with just one.  What’s more, this single monthly repayment could be lower than the sum of existing outgoings.  However, if opting for a secured loan to consolidate debt, it should be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.